AAA Publishers Relying on Decade-Old Franchises, Claims Phil Spencer in Leaked Email

In a leaked email from 2020, Xbox CEO Phil Spencer argues that AAA videogame publishers have failed to adapt to the shift from physical to digital distribution and subscription models like Microsoft's Game Pass. This has led to a reliance on production scale and a reluctance to invest in new IPs. Spencer notes that AAA publishers are milking their top franchises but struggling to create new hit franchises, while relying on rented IPs. He also discusses the impact of game subscriptions on publishers and the need for adaptation in the industry.